Private Label vs. National Brands in the Deli: An Honest Comparison

What each option really is

A national brand is a product the manufacturer markets under its own name and sells to many stores. The brand belongs to them: they decide the recipe, the packaging, the line-up and, in practice, much of how it is promoted.

A private label product is made by a manufacturer for one company and sold under that company's name. In grocery, these are often called store brands, house brands or own brands, and they are usually sold only in the chain that owns them. Familiar examples outside the deli include Kroger's Simple Truth and Walmart's Great Value. Most store-brand products are made by third-party producers, and those producers are often not named on the package.

There is also a middle option worth knowing about. A white label product is designed by the manufacturer, who may sell the same item to several companies, each under its own name. It is quicker to set up, but it isn't really yours: another store down the road could be selling the same thing.

Side by side

Factor	National brand	Private label
Whose name is on it	The manufacturer's	Yours
Who sets the spec	The brand	You, working with your supplier
Who sets the price ladder	You, within the brand's pricing	You
Recognition on day one	High	Built by you over time
Can competitors sell it?	Yes	No, it's exclusive to you
Loyalty it builds	To the brand	To your store
Line changes	Decided by the brand	Decided by you
Marketing support	Often provided by the brand	Your counter, staff and circular
Label approval	Handled by the brand's producer	Handled through your supplier's producing establishment

Where national brands win

• Instant recognition. A shopper who wants a specific brand will look for it. Some customers are loyal to a name they grew up with.
• Brand-funded marketing. Brands may support promotions, displays and advertising.
• No setup. You order, slice and sell. There is no label to design and no spec to agree.

If a brand is something your customers ask for by name, keeping it can make sense, even if the rest of the case becomes yours.

Where private label wins

• Your name builds your store. Every pound of "your" turkey that a customer enjoys is a reason to come back to you, not to any store that stocks the same brand.
• It's exclusive. The store across town can't match your price on a product it can't buy.
• You decide what to carry. No-pump roast beef, a lower-sodium ham, a maple turkey, an all-natural air-dried prosciutto: you choose the items that fit your shoppers rather than taking a brand's full line.
• You control the price ladder. Store brands are usually priced below comparable name brands, and you decide where each item sits. Our guide to private label deli margins shows how to measure what that is worth.
• Stability. When the line is yours, changes happen when you decide.

The real risks of private label, and how to manage them

Risk	How to manage it
Quality that doesn't match your name	Taste side by side before launch; write a spec sheet; start with your best sellers
Customers don't notice the new line	Sample at the counter, brief staff, sign the case clearly, feature it in your circular
Too many items too soon	Launch a short core line, then add in waves
Labels held up by claims	Keep first labels plain and accurate; raise special claims early. See our label requirements guide
Unclear food-safety standards	Ask suppliers how products are made and controlled. See what HACCP means for deli buyers

The mix most delis end up with

Very few stores go all one way. A common pattern is:

1. Private label on the core. The turkey, ham, roast beef and everyday cheeses that make up most of your sales carry your name.
2. A national brand or two as anchors, where customers ask for them by name.
3. Private label on specialties that set you apart: a peppered or smoked turkey, a Black Forest ham, Genoa salame or sopressata, and your own deli salads.

The right balance depends on your customers. A specialty or gourmet market may want almost everything under its own name. A store whose shoppers are loyal to a particular brand may keep it and build private label around it.

Questions to decide your mix

• Which items do customers ask for by brand name, and which do they ask for by description ("the good turkey")?
• Which items make up most of your deli sales by weight?
• Where do you lose the most to shrink and ends today?
• Which specialties could become something your store is known for?
• How much staff time can you give to sampling and selling in the first months?

How to test a store brand before you commit

You don't have to switch your whole case to find out whether private label works for your customers. A simple trial gives you real answers:

1. Pick two or three high-volume items, for example an oven-roasted turkey, a baked ham and American cheese.
2. Taste blind with your team. Put your current product and the private label sample side by side without labels. Note flavor, texture, how it slices and how it looks on the board.
3. Run them side by side in the case for a few weeks, with your name and a clear sign on the new item.
4. Sample at the counter and listen to what customers say.
5. Compare the numbers: pounds sold, yield and margin per pound for each item.

If the store brand holds its own on taste and wins on margin and loyalty, expand. If customers keep asking for the national brand by name, keep it and build around it.

What changes behind the counter

Switching to private label is mostly invisible to your deli team, but a few things do change. Staff need to know the new names and what makes each item different, so they can recommend them. Slicer settings and portion guides may need adjusting for new piece sizes. And signage should use your store's name consistently, so the line reads as one brand rather than a mix of labels.

Who this works for

Longview Trading has built private label deli programs for more than 25 years, for retailers from high-end stores with as few as two locations to some of the nation's largest chains. That includes independent grocers, specialty and gourmet markets and supermarket chains. We can customize one product or a full line of deli meats, cheeses and salads.

Not sure which items to start with? Ask for a quote, tell us what you sell today, and we will suggest a starting line you can taste side by side with what you carry now.